Gold Price Forecast: XAU/USD jumps to test October highs around $1810
- Metals on the rise as US yields tumble despite upbeat NFP.
- XAU/USD hits two week highs above $1810.
- Gold is about to end the week on a positive tone, almost $50 above the weekly low.
Metals are rising considerably boosted by lower US yields on Friday. Gold broke above $1800 and is testing a key short-term resistance area around $1810. A firm break higher could trigger more gains.
Economic data form the US came in above expectation with payrolls rising by 531K in October above the 425K of market consensus. The greenback rose initially but then, during the American session pulled back and reversed its course, amid a sharp decline in US bonds and as equity prices rise. The US 10-year yield fell from 1.54% to the lowest in a month at 1.45%.
Testing critical area
Gold peaked at $1812, the highest in two weeks. It is trading around $1810 and a firm break above would put the price at the highest in almost two months, targeting the next resistance at $1820.
A failure to break above $1810 would leave gold vulnerable to a bearish correction. Support levels are located at $1795, $1785 and then $1770.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
